Federal Register #D12118

Regulatory Exemption for UBS AG Asset Managers in Zurich, Switzerland

This regulatory action by the Department of Labor's Employee Benefits Security Administration concerns an exemption for UBS AG asset managers in Zurich, Switzerland: - The exemption allows current and future UBS AG-affiliated asset managers in Zurich to continue relying on Prohibited Transaction Exemption (PTE) 84-14 - Applies despite four convictions and one non-prosecution agreement involving UBS-affiliated entities - Exemption period covers nine years - Aims to protect ERISA-covered plans and IRAs from potential harm if UBS QPAMs were disqualified - Imposes requirements on UBS QPAMs: - Maintain written processes for compliance - Indemnify Covered Plans for losses - Provide notices of obligations and violations - Adhere to fiduciary standards under ERISA and the Internal Revenue Code - No procurement of products or services is involved; this is a regulatory exemption affecting UBS AG and its asset managers - OEM highlighted: UBS AG (as the affected entity) - No contract value, product, or service line items are present, as this is not a procurement opportunity

Description

This exemption allows current and future UBS-related asset managers to continue to rely on Prohibited Transaction Exemption (PTE) 84-14 from May 5, 2026, to May 5, 2035, if certain conditions are met. The exemption is granted notwithstanding four convictions and one non-prosecution agreement involving affiliated entities of UBS. It aims to protect Covered Plans from harms and costs that would arise if UBS Qualified Professional Asset Managers (QPAMs) are no longer able to rely on the relief described in PTE 84-14. The exemption requires UBS QPAMs to adhere to fiduciary standards and responsibilities mandated by ERISA and the Code, and to act with integrity on behalf of Covered Plans.

View original listing